Sharing or collaborative economies are meant to be comprised of p2p interactions. However, a middleman is necessitated due to information asymmetry; this middleman makes sure the value transfer remains. Ironically, the fees taken by the middleman waive any benefits received by the information equality the middleman provided.
UChain is creating a blockchain that will empower everyday people to build fluid shared economies where the p2p interactions do not need to involve an intermediary. A kay challenge to achieving this goal involves mitigating one of the most difficult economic challenges ever. However, blockchain is designed to resolve this issue by providing transparency.
In short, Byzantine General’s Problem is a reference to when lack of transparency on a system’s interactions can lead to system failure.
As on-chain interactions involve a transparent transaction, blockchain technology resolves systematic problems that can occur due to information asymmetry. A direct value of this in a p2p sharing market would be the fact that prices would be just.
At present, a middleman ensures Individual biases or information asymmetry would not impact pricing. If p2p interactions surface in a shared market, there has to be an underlying force ensuring interactions are valued justly to make sure information asymmetry does not lead to exploitation, i.e. a service provider over-charging a naïve buyer.
The fact that any providers’ interactions will be transparent, service buyers will know what the interaction has been valued in the past. Without the need of any middleman, the blockchain provides transparency on interaction value.
UChain goes beyond blockchain’s transparency feature when it comes to building information symmetry. It issues credit passports to individual and these record behavior of each user within the UChain ecosystem. This is able to provide features that even centralized entities of today cannot.
User data is far to segmented and exists among many different applications. The result of this is that there is no complete profile of any individual and thus it becomes difficult to monitor user behavior with other users across different services. UChain seamlessly records user behavior and thus, without directly interfering, is able to ensure users act ethically within the ecosystem.
As UChain is just the foundation of the decentralized shard economies that can be built atop it, the credit passport provides fluid data across the services that utilize UChain. This adds additional measures to ensure information symmetry is sustained to create fair p2p interactions.
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